5 Examples Of An Annuity

Shawn Plummer

CEO, The Annuity Expert

Annuity Examples

  • The Pension Plan
  • Mega Millions Annuity
  • Powerball Annuity
  • Court Settlement
  • Tax-Sheltered Annuity

Pension Plan

A pension plan is a type of retirement plan for which an employer contributes to a worker’s pool of account funds. The fund is invested on the worker’s behalf and produces earnings when the worker retires.

When pension plan owners retire, they can either take the plan’s value in a lump sum or payments for the rest of the owner’s life. The payments are in the form of an annuity.

Monthly annuity payments are usually offered as a single-life annuity for the rest of your life or as a joint and survivor annuity that pays monthly for you and your spouse. Joint and survivor annuities pay a lesser amount each month than a single-life annuity, but the payouts continue after your death until the surviving spouse dies.

Mega Millions Annuity

Mega Millions offer lottery winners either a lump sum cash option or a payout.

The annuity payout from Mega Millions is paid one time immediately and then twenty-nine annual payments, each five percent larger than the previous.

Powerball Annuity

The Powerball jackpot offer lottery winners either a lump sum cash option or a payout.

The annuity payout from Powerball is paid one time immediately and then twenty-nine annual payments, each five percent larger than the previous.

Court Settlement

A structured settlement is a settlement that is derived from the result of winning a civil case.

A settlement typically includes a one-time lump sum of cash, followed by regular payments. An annuity distributes these payments.

Tax-Sheltered Annuity (TSA)

Tax-sheltered annuities, or TSAs to the IRS, are pensions for employees of nonprofit organizations as specified by law in regards to Sections 501(c)(3) and 403(b) of the Internal Revenue Code.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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